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Magang unveils his campaign for BDP SG position

lesang magang

Former Botswana Democratic Party (BDP) Youth Wing leader and businessman, Lesang Magang has this week officially announced his decision to contest for the party’s prestigious position as Secretary General, at the party’s next elective congress billed for July 2021.

Magang told WeekendPost this week after lobbying from democrats and also as a result of his own reflection, he has offered himself to serve in the position.

The former Youth Wing leader said, out of respect, he has also reached out to President Mokgweetsi Masisi, to inform him of his decision.

“He is the party leader. And out of respect and also since we share the philosophy of transforming the country and party, I have sought his audience. I will not go into much detail on this save to say I have massive respect for his desire not to divide the party by engaging in formation of lobbyists though some people had tried to misrepresent him on this score,” Magang told WeekendPost.

“I had served the party really well in my youth and I thought it’s time to come back. All that experience in business and politics is now required by the country and party. We live in critical times whereas the BDP we need to transform to survive. And I am a transformational leader. I would want to be part of leading the transformation of this party alongside a President who has clearly voiced his desire for transformation or party and country.”

Unlike the previous congress where the chairmanship defined the congress, the position as Secretary General will be the most sought after position. Vice President, Slumber Tsogwane is unlikely to be challenged for the Chairman position.

However, Mpho Balopi, who is the incumbent Secretary General has not attracted the same luck, as a number of democrats intends to challenge him for the position.

Magang, who is the son of former cabinet minister, David Magang, indicated that the 2021 congress, the first since 2017, would be critical in the sense that the soul and future of the party may be at stake.

“It will mark a turning point for the party in that the leadership so elected will be responsible for preparing us immediately for the 2024 general election. Before then even, the leadership elected will have to rebuild structures, fix Bulela Ditswe and foster trust and integrity in our primary election and internal systems. In short, we will need to rebuild the confidence of our members in our systems so as to survive 2024 and extend our rule.”

Having served in the party structures before — including the Central Committee during the presidency of Sir Ketumile Masire and Festus Mogae — Magang believes such experience will come handy in helping the party to consolidate its power.

“I know the heart and soul of the party like the back of my hand. I know how we used to do things yet am equipped with how things ought to happen today and for the future,” he said.

“I have seen the party grow, fall and rise again. And all that experience I can use to help President Masisi transform the party to position it for the future as he has rightly pledged to do. For instance, when I speak of building structures it’s something I’ve done before- we’ve crisscrossed the country before being hosted by Democrats to help mobilize and build structures and we made it mad fun.”

Despite not participating in the 2013 and 2018 party primaries after an unsuccessful bid in 2008, Magang contend that he has always been serving the party behind the scenes.

He said it is during this time that he had the luxury of reflecting and also preparing for the next political involvement within the party.

“When I was not leading at the front I was an active follower that assisted in the campaigns of others. For instance, I served in the BDP Communications and International Relations Committee before and was also a manifesto champion for the party in the run up to the 2019 general election,” he argued.

“I would say then that spending time being led and not being on the front leading has shaped my thinking. I have learnt to listen more, I have learnt to follow. And they say the best lessons in leadership include learning to follow.”

ON IMPLEMENTATION OF BDP MANIFESTO

With the party’s victory in the 2019 general election partly on the basis of its pledges in the manifesto, BDP face the tough task of delivering its promises, which include among others reviewing the country’s constitution and Citizen Economic Empowerment (CEE).

“The party must govern. We have a very good system in place where we keep a large professional civil service but the BDP is held accountable every five years. So we need the party to hold government accountable,” he said.

“Through the office of the Secretary General, we need to continuously have the party position being made clear such that our pledges are always top of mind.”

Magang argued that the party should also support government programmes which in essence are party programmes.

“The party must proudly use its structures to promote uptake of government programmes in order for people to benefit. Many of our people could do with benefiting from government programmes,” he said.

“Without being unfair or side-lining the opposition, we must have people in our structures and our members being assisted to enrol in government programmes. Mananeo a puso a tshwanetse a bonelwa mo madomkrageng mme re sa dire botsotsi bope fela, re rotloetsa re bo re rutuntsha botlhe mo pontsheng.”

Magang believes the constitutional review forms key components of BDP’s transformation pledge and said it is necessary for the party to ensure that it happens.

“It is absolutely critical. Our constitution has served as well, but we must review it in order to take the next giant leap for our development and democracy. I am proud that this is a key BDP pledge and one we intend to make happen.”

REBUILDING THE PARTY

BDP suffered two splits in the last 10 years, a development which has seen the party losing its status as invincible, and many observers believes the party could soon go past its glory days.

“The BDP of our forefathers was more than just a political party. It was an organization of people who were friends from all over our country, people who missed getting together again in song and conferences. It was as much a party as it was a brotherhood/sisterhood in which everyone felt they were welcome and had a place,” he said.

“This mentality penetrated even to our party structures. Structures existed and were strong because there was fellowship, and they were also adequately monitored and engaged. The structures held their own activities regularly. In so many places, our structures ran activities that became entertainment platforms for people to look forward to. We need to urgently get back to building structures that are not only visible before congress or primary elections.

“This way, we will not easily split. The spirit of being democrats would prevail and we all would also know that one needs not have power at all costs.

“We have problems because sometimes people feel the need to win at all costs that they resort to even cheating to win- and some have previously even been facilitated by leadership to cheat. Bulela ditswe is a prime example. This cannot be fair and only leads to infighting.”

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Mowana Mine to open, pay employees millions

18th January 2022
Mowana Mine

Mowana Copper Mine in Dukwi will finally pay its former employees a total amount of P23, 789, 984.00 end of this month. For over three years Mowana Copper Mine has been under judicial management. Updating members, Botswana Mine Workers Union (BMWU) Executive Secretary Kitso Phiri this week said the High Court issued an order for the implementation of the compromise scheme of December 9, 2021 and this was to be done within 30 days after court order.

“Therefore payment of benefits under the scheme including those owed to Messina Copper Botswana employees should be effected sometime in January latest end of January 2022,” Kitso said. Kitso also explained that cash settlement will be 30 percent of the total Messina Copper Botswana estate and negotiated estate is $3,233,000 (about P35, 563,000).

Messina Copper was placed under liquidation and was thereafter acquired by Leboam Holdings to operate Mowana Mine. Leboam Holdings struck a deal with the Messina Copper’s liquidator who became a shareholder of Leboam Holdings. Leboam Holdings could not service its debts and its creditors placed it under provisional judicial management on December 18, 2018 and in judicial management on February 28, 2019.

A new company Max Power expressed interest to acquire the mining operations. It offered to take over the Mowana Mine from Leboam Holdings, however, the company had to pay the debts of Leboam including monies owed to Messina Copper, being employees benefits and other debts owed to other creditors.

The monies, were agreed to be paid through a scheme of compromise proposed by Max Power, being a negotiated payment schedule, which was subject to the financial ability of the new owners. “On December 9, 2021, Messina Copper liquidator, called a meeting of creditors, which the BMWU on behalf of its members (former Messina Copper employees) attended, to seek mandate from creditors to proceed with a proposed settlement for Messina Copper on the scheme of compromise. It is important to note that employee benefits are regarded as preferential credit, meaning once a scheme is approved they are paid first.”

Negotiated estate is P35, 563,000

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Councilors’ benefits debacle-savingram reveals detail

18th January 2022

A savingram the Ministry of Local Government and Rural Development sent to Town Clerks and Council Secretaries explaining why councilors across the country should not have access to their terminal benefits before end of their term has been revealed.

The contents of the savingram came out in the wake of a war of words between counselors and the Ministry of Local Government and Rural Development. The councilors through the Botswana Association of Local Authorities (BALA) accuse the Ministry of refusing to allow them to have access to their terminal benefits before end of their term.

This has since been denied by the Ministry.  In the savingram to town councils and council secretaries across the country, Permanent Secretary in the Ministry of Local Government and Rural Development Molefi Keaja states that, “Kindly be advised that the terminal benefits budget is made during the final year of term of office for Honorable Councilors.”  Keaja reminded town clerks and council secretaries that, “The nominal budget Councils make each and every financial year is to cater for events where a Councilor’s term of office ends before the statutory time due to death, resignation or any other reason.”

The savingram also goes into detail about why the government had in the past allowed councilors to have access to their terminal benefits before the end of their term.  “Regarding the special dispensation made in the 2014-2019, it should be noted that the advance was granted because at that time there was an approved budget for terminal benefits during the financial year,” explained Keaja.  He added that, “Town Clerks/Council Secretaries made discretions depending on the liquidity position of Councils which attracted a lot of audit queries.”

Keaja also revealed that councils across the country were struggling financially and therefore if they were to grant councilors access to their terminal benefits, this could leave their in a dire financial situation.  Given the fact that Local Authorities currently have cash flow problems and budgetary constraints, it is not advisable to grant terminal benefits advance as it would only serve to compound the liquidity problems of councils.

It is understood that the Ministry was inundated with calls from some Councils as they sought clarification regarding access to their terminal benefits. The Ministry fears that should councils pay out the terminal benefits this would affect their coffers as the government spends a lot on councilors salaries.

Reports show that apart from elected councilors, the government spends at least P6, 577, 746, 00 on nominated councilors across the country as their monthly salaries. Former Assistant Minister of Local Government and Rural Development, Botlogile Tshireletso once told Parliament that in total there are 113 nominated councilors and their salaries per a year add up to P78, 933,16.00. She added that their projected gratuity is P9, 866,646.00.

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Households spending to drive economic recovery

17th January 2022

A surge in consumer spending is expected to be a key driver of Botswana’s economic recovery, according to recent projections by Fitch Solutions. Fitch Solutions said it forecasts household spending in Botswana to grow by a real rate of 5.9% in 2022.

The bullish Fitch Solutions noted that “This is a considerable deceleration from 9.4% growth estimated in 2021, it comes mainly from the base effects of the contraction of 2.5% recorded in 2020,” adding that, “We project total household spending (in real terms) to reach BWP59.9bn (USD8.8bn) in 2022, increasing from BWP56.5bn (USD8.3bn) in 2021.”  According to Fitch Solutions, this is higher than the pre-Covid-19 total household spending (in real terms) of P53.0 billion (USD7.8bn) in 2019 and it indicates a full recovery in consumer spending.

“We forecast real household spending to grow by 5.9% in 2022, decelerating from the estimated growth of 9.4% in 2021. We note that the Covid-19 pandemic and the related restrictions on economic activity resulted in real household spending contracting by 2.5% in 2020, creating a lower base for spending to grow from in 2021 and 2022,” Fitch Solutions says.

Total household spending (in real terms), the agency says, will increase in 2022 when compared to 2021. In 2021 and 2022, total household spending (in real terms) will be above the pre-Covid-19 levels in 2019, indicating a full recovery in consumer spending, says Fitch Solutions.  It says as of December 6 2021 (latest data available), 38.4% of people in Botswana have received at least one vaccine dose, while this is relatively low it is higher than Africa average of 11.3%.

“The emergence of new Covid-19 variants such as Omicron, which was first detected in the country in November 2021, poses a downside risk to our outlook for consumer spending, particularly as a large proportion of the country’s population is unvaccinated and this could result in stricter measures being implemented once again,” says Fitch Solutions.

Growth will ease in 2022, Fitch Solution says. “Our forecast for an improvement in consumer spending in Botswana in 2022 is in line with our Country Risk team’s forecast that the economy will grow by a real rate of 5.3% over 2022, from an estimated 12.5% growth in 2021 as the low base effects from 2020 dissipate,” it says.

Fitch Solutions notes that “Our Country Risk team expects private consumption to be the main driver of Botswana’s economic growth in 2022, as disposable incomes and the labour market continue to recover from the impacts of the Covid-19 pandemic.”
It says Botswana’s tourism sector has been negatively impacted by the Covid-19 pandemic and the related travel restrictions.

According to Fitch Solutions, “The emergence of the Omicron variant, which was first detected in November 2021, has resulted in travel bans being implemented on Southern African countries such as South Africa, Botswana, Lesotho, Namibia, Zimbabwe and Eswatini. This will further delay the recovery of Botswana’s tourism sector in 2021 and early 2022.”  Fitch Solutions, therefore, forecasts Botswana’s tourist arrivals to grow by 81.2% in 2022, from an estimated contraction of 40.3% in 2021.

It notes that the 72.4% contraction in 2020 has created a low base for tourist arrivals to grow from.  “The rollout of vaccines in South Africa and its key source markets will aid the recovery of the tourism sector over the coming months and this bodes well for the employment and incomes of people employed in the hospitality industry, particularly restaurants and hotels as well as recreation and culture businesses,” the report says.

Fitch Solutions further notes that with economies reopening, consumers are demanding products that they had little access to over the previous year. However, manufacturers are facing several problems.  It says supply chain issues and bottlenecks are resulting in consumer goods shortages, feeding through into supply-side inflation.  Fitch Solutions believes the global semiconductor shortage will continue into 2022, putting the pressure on the supply of several consumer goods.

It says the spread of the Delta variant is upending factory production in Asia, disrupting shipping and posing more shocks to the world economy. Similarly, manufacturers are facing shortages of key components and higher raw materials costs, the report says adding that while this is somewhat restricted to consumer goods, there is a high risk that this feeds through into more consumer services over the 2022 year.

“Our global view for a notable recovery in consumer spending relies on the ability of authorities to vaccinate a large enough proportion of their populations and thereby experience a notable drop in Covid-19 infections and a decline in hospitalisation rates,” says Fitch Solutions.
Both these factors, it says, will lead to governments gradually lifting restrictions, which will boost consumer confidence and retail sales.

“As of December 6 2021, 38.4% of people in Botswana have received at least one vaccine dose. While this is low, it is higher than the Africa average of 11.3%. The vaccines being administered in Botswana include Pfizer-BioNTech, Sinovac and Johnson & Johnson. We believe that a successful vaccine rollout will aid the country’s consumer spending recovery,” says Fitch Solutions.  Therefore, the agency says, “Our forecasts account for risks that are highly likely to play out in 2022, including the easing of government support. However, if other risks start to play out, this may lead to forecast revisions.”

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